City of Doncaster Council’s Cabinet will next week review financial approvals needed to progress the full reopening of Doncaster Sheffield Airport, which closed in November 2022. The agenda includes requests to release remaining funds, finalise borrowing approvals, and formalise the acceptance of financial support from the South Yorkshire Mayoral Combined Authority and the UK Government.
Up to £160 million has been identified through various funding mechanisms to back the airport’s relicensing process and early operational phase. The council-established company, FlyDoncaster Ltd, will operate the airport, with support from Munich Airport International. Funding for FlyDoncaster will take the form of council loans repaid through operational income and combined authority funding.
Mayor Ros Jones said: “Fully reopening Doncaster Sheffield Airport is my number one priority, I have said all along that reopening the airport is a massive undertaking but one that is vital for the future prosperity, well-being and economic growth of our city, our region and UK PLC.
“The Cabinet report appraises where we are today and sets out with clarity and probity the challenges and opportunities that are inherent in a programme of this size and scale.
“That said, the ambition is that the airport does become a success story for Doncaster and South Yorkshire. The report, which Cabinet is being asked to support, sets out the range of factors that come into play to make this happen, including approving the finances and setting the timeframe for economic profit. This could be significant after a relatively short space of operating time, given the length of the programme, in under ten years to multi-million-pound forecasts of profitability.”
Forecasts show operating losses of around £81 million across the first nine years of operation, from 2026 to 2034, followed by pre-tax profits of up to £230 million by 2049. Annual operating costs are expected to range between £5.5 million and £9.4 million over the 24-year financial plan.
The airport project, part of the wider South Yorkshire Airport City programme, aligns with Doncaster’s Gateway East initiative, which aims to drive job creation, housing growth, and regional regeneration. Business rates generated over 25 years could reach £300 million, with 75% retained by the council. A final decision on borrowing is due from Full Council later this month.
